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Where the Knicks stand financially

WHERE DO THE KNICKS STAND, FINANCIALLY?
by JONAH on JULY 8, 2012 in GENERAL KNICKS, OFF SEASON with 12 comments

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"I’ve had many people ask me if different financial moves are possible, so here’s a post explaining what the Knicks can offer.

When news broke that Jason Kidd and the New York Knicks agreed to terms on a deal, no numbers were leaked. Now we know that the Knicks are in the midst of working out a sign-and-trade with the Dallas Mavericks for Jason Kidd, so that they can maintain their tax-payer’s MLE for another signing. Should they not come to an agreement, though, the Knicks will likely give Kidd their mini-MLE.

According to Larry Coon, if a non-tax paying team sends out $0 to $9.8 million in out-going salary, they are eligible to take back up to 150% of the out-going salary, plus $100,000. With that said, the Knicks can put together two sign-and-trade offers.

Offer 1:

Toney Douglas has a $2,067,880 contact for the upcoming year. If the Knicks were to use Douglas in a sign-and-trade, they could take back 150% of his salary, leaving $3,201,820 for a potential addition to the team.
Offer 2:

Dan Gadzuric ($1,352,181) and Jerome Jordan ($762,196) both have non-gaurenteed contracts that can be immediately waived upon trading for. If the Knicks were to use Gadzuric and Jordan in a sign-and-trade, they could take back $3,281,565.5 in salary.
Both of these offers would be packaged with cash considerations, and/or future draft picks. The Knicks cannot trade their upcoming 2013 first-round draft pick, because of the Stepien Rule – “teams are restricted from trading away future first round draft picks in consecutive years” – but could deal future picks or second round selections (can’t deal 2013 first-rounder because they sent the 2014 pick to Denver, but can trade 2015 picks immediately after the 2014 draft). Also, either deal could be supplemented with Josh Harrellson’s non-guarented $762,196 deal, which would raise offer 1′s first-year salary to $4,345,114 and offer 2′s first-year salary to $4,414,859.5.

So, since there is no limit on how many sign-and-trades a team can pull off, the Knicks could use two sign-and-trades, as well as keep their mini-MLE, which would give the Knicks three, roughly $3 million contracts to offer. One will be going to Kidd, not sure which yet, if Camby decides to join the team, one would go to him, and then the Knicks have one left.

The Knicks could also sign Jason Kidd to the mini-MLE, then combined their two offers into one deal, giving a potential free-agent a starting salary of $7,516,679.5. With this deal, the Knicks can pull themselves closer to a player of OJ Mayo’s caliber, who will demand more than the mini-MLE. Of course, in this scenario, the Knicks would only be able to offer Marcus Camby the veteran’s minimum, which would likely take them out of the running for the former Knicks big man.

After the Knicks decide on what to do with their sign-and-trade assets, as well as their mini-MLE, they will then start offering several veterans the veteran’s minimum, pitching the chance the win.

The Knicks have three contracts to offer: Sign-and-trade, mini-MLE and the veteran’s minimum. Jason Kidd will demand one contract valued around $3 million a year, but aside from that, the rest is up in the air.

If you have any more question, feel free to leave them in the comments and I’ll update this post."